4basebio raises £15 million in capital raise subject to shareholder approval

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4basebio raises £15m capital

Highlights

4basebio has conditionally raised gross proceeds of about £15.0 million via a placing and subscriptions totaling 3,689,319 new ordinary shares, subject to shareholder approval.
M&G Investment Management Limited and Elevage Medical Technologies LLC have participated in the fundraising, while Deutsche Balaton group's involvement includes a separate subscription and set-off arrangement.
2Invest AG will receive 970,873 shares for £5 million in cash and debt set-off, reducing the €25 million shareholder loan's principal to €21,083,234 and extending its maturity to 31 October 2030.

Funding structure and approval timeline

As reported by London Stock Exchange, citing London Stock Exchange Regulatory News Service, 4basebio has conditionally raised gross proceeds of about £15.0 million through a placing of 2,664,080 new ordinary shares and subscriptions for 1,025,239 new ordinary shares. The fundraising is subject to shareholder approval and covers institutional investors, certain existing shareholders and director participation.

M&G Investment Management Limited, which holds 12.62% of the company, has subscribed for 465,830 placing shares. Elevage Medical Technologies LLC, which holds 17.16%, has subscribed for 256,504 placing shares, while the participation of the Deutsche Balaton group forms part of a separate subscription and set-off arrangement.

Certain directors and officers, Amy Walker, Richard Bungay, Heikki Lanckriet and Hansjörg Plaggemars, have subscribed for 54,366 shares under the subscription, representing aggregate gross proceeds of £0.3 million. The company says it expects to post a shareholder circular and notice of general meeting within three business days, with the meeting expected on or around 6 November 2026.

Loan amendment and shareholder backing

Alongside the placing, 2Invest AG has agreed to subscribe for 194,174 shares in cash for about £1 million and a further 776,699 shares for about £4 million through a set-off against principal and accrued interest under 4basebio's existing shareholder loan. That transaction reduces the outstanding balance of the fully drawn €25 million facility to a principal sum of €21,083,234.

The maturity date of the shareholder loan is also being extended by two years to 31 October 2030. Entities in the Deutsche Balaton group currently hold 32.95% of 4basebio's existing ordinary share capital, and the 2Invest subscription, set-off and loan amendment remain conditional on completion of the placing and the rest of the subscriptions.

The shareholder vote will seek approval for new authorities allowing the directors to allot the placing shares, subscription shares and any retail offer shares, and to disapply statutory pre-emption rights for those allotments. The financing package gives 4basebio additional capital while reshaping part of its balance sheet through debt conversion and a longer repayment timeline.

In our earlier coverage of Excel Force MSC Bhd’s proposed fundraising, we outlined the company’s plan to raise up to RM10.66 million via new share issuance as its cash position weakened, with proceeds partly earmarked for ongoing projects. We also noted how the emergence of a new major shareholder and subsequent board changes highlighted the governance implications that can accompany capital-raising efforts and shifting ownership structures.

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